Credit Agreement C4100-MG Conformed

Page 1 CONFORMED COPY CREDIT NUMBER 4100-MAG Development Credit Agreement (Second Poverty Reduction Support Credit) between REPUBLIC OF MADAGASCAR and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated July 13, 2005 Page 2 CREDIT NUMBER 4100-MAG DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated July 13, 2005, between REPUBLIC OF MADAGASCAR (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Borrower has issued a Poverty Reduction Strategy Paper, dated July 2003 (hereinafter called the PRSP), describing a program of actions, objectives and policies designed to promote rapid and sustainable development to reduce poverty by half in ten years; (B) the Borrower has issued a letter dated June 3, 2005 (hereinafter called the Policy Letter), describing a program of actions, objectives and policies consistent with, and designed to give effect to, the PRSP (hereinafter called the Program), declaring the Borrower's commitment to the execution of the Program, and requesting assistance from the Association in support of the Program during the execution thereof; (C) the Borrower has carried out the measures and taken the actions described in Schedule 2 of this Agreement to the satisfaction of the Association and has maintained a macroeconomic policy framework satisfactory to the Association; and (D) on the basis, inter alia , of the foregoing, the Association has decided in support of the Program to provide such assistance to the Borrower by making the Credit in a single tranche as hereinafter provided; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The